§ 54.311   Connect America Fund Alternative-Connect America Cost Model
Support.

   (a) Voluntary election of model-based support. A rate-of-return carrier
   (as that term is defined in § 54.5) receiving support pursuant to
   subparts K or M of this part shall have the opportunity to voluntarily
   elect, on a state-level basis, to receive Connect America
   Fund-Alternative Connect America Cost Model (CAF-ACAM) support as
   calculated by the Alternative-Connect America Cost Model (A-CAM)
   adopted by the Commission in lieu of support calculated pursuant to
   subparts K or M of this part. Any rate-of-return carrier not electing
   support pursuant to this section shall continue to receive support
   calculated pursuant to those mechanisms as specified in Commission
   rules for high-cost support.

   (b) Geographic areas eligible for support. CAF-ACAM model-based support
   will be made available for a specific number of locations in census
   blocks identified as eligible for each carrier by public notice. The
   eligible areas and number of locations for each state identified by the
   public notice shall not change during the term of support identified in
   paragraph (c) of this section.

   (c) Term of support. CAF-ACAM model-based support shall be provided to
   the carriers that elect to make a state-level commitment for a term
   that extends until December 31, 2026.

   (d) Interim deployment milestones. Recipients of CAF-ACAM model-based
   support must complete deployment to 40 percent of fully funded
   locations by the end of 2020, to 50 percent of fully funded locations
   by the end of 2021, to 60 percent of fully funded locations by the end
   of 2022, to 70 percent of fully funded locations by the end of 2023, to
   80 percent of fully funded locations by the end of 2024, to 90 percent
   of fully funded locations by the end of 2025, and to 100 percent of
   fully funded locations by the end of 2026. By the end of 2026, carriers
   must complete deployment of broadband meeting a standard of at least 25
   Mbps downstream/3 Mbps upstream to the requisite number of locations
   specified in § 54.308(a)(1)(i). Compliance shall be determined based on
   the total number of fully funded locations in a state. Carriers that
   complete deployment to at least 95 percent of the requisite number of
   locations will be deemed to be in compliance with their deployment
   obligations. The remaining locations that receive capped support are
   subject to the standard specified in § 54.308(a)(1)(ii).

   (e) Transition to CAF-ACAM Support. Carriers electing CAF-ACAM
   model-based support whose final model-based support is less than the
   carrier's high-cost loop support and interstate common line support
   disbursements for 2015, will transition to model-based support as
   follows:

   (1) If the difference between a carrier's model-based support and its
   2015 high-cost support, as determined in paragraph (e)(4) of this
   section, is 10 percent or less, it will receive, in addition to
   model-based support, 50 percent of that difference in year one, and
   then will receive model support in years two through ten.

   (2) If the difference between a carrier's model-based support and its
   2015 high-cost support, as determined in paragraph (e)(4) of this
   section, is 25 percent or less, but more than 10 percent, it will
   receive, in addition to model-based support, an additional transition
   payment for up to four years, and then will receive model support in
   years five through ten. The transition payments will be phased-down 20
   percent per year, provided that each phase-down amount is at least five
   percent of the total 2015 high-cost support amount. If 20 percent of
   the difference between a carrier's model-based support and its 2015
   high-cost support is less than five percent of the total 2015 high-cost
   support amount, the transition payments will be phased-down five
   percent of the total 2015 high-cost support amount each year.

   (3) If the difference between a carrier's model-based support and its
   2015 high-cost support, as determined in paragraph (e)(4) of this
   section, is more than 25 percent, it will receive, in addition to
   model-based support, an additional transition payment for up to nine
   years, and then will receive model support in year ten. The transition
   payments will be phased-down ten percent per year, provided that each
   phase-down amount is at least five percent of the total 2015 high-cost
   support amount. If ten percent of the difference between a carrier's
   model-based support and its 2015 high-cost support is less than five
   percent of the total 2015 high-cost support amount, the transition
   payments will be phased-down five percent of the total 2015 high-cost
   support amount each year.

   (4) The carrier's 2015 support for purposes of the calculation of
   transition payments is the amount of high-cost loop support and
   interstate common line support disbursed to the carrier for 2015
   without regard to prior period adjustments related to years other than
   2015, as determined by the Administrator as of January 31, 2016 and
   publicly announced prior to the election period for the voluntary path
   to the model.

    81 FR 24340 , Apr. 25, 2016, as amended at  82 FR 14339 , Mar. 20, 2017]

   Effective Date Note: At  81 FR 24340 . Apr. 25, 2016, § 54.311 was added.
   Paragraph (a) contains information collection and recordkeeping
   requirements and will not become effective until approval has been
   given by the Office of Management and Budget.

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